Vietnamese infrastructure developer Deo Ca Group JSC has signed a joint venture agreement with Laos’ Petroleum Trading Lao (Petro Trade) Public Company to develop the Vietnam-Laos railway project.

The selected partner will be responsible to develop the railway line that spans 554.7 km, linking Vung Ang Port in the coastal province of Ha Tinh to Vientiane. In accordance with the agreement, Deo Ca Group and Petro Trade would spend VND27,485 billion (US$ 1.16 billion) to build a 103-km segment of the railway between Vung Ang Port and Mu Gia Pass in Quang Binh Province.

The VND149,550 billion (US$6.33 billion) project is anticipated to improve freight forwarding services between Vietnam and neighboring nations, particularly between Vung Ang Port and the commercial hubs in northern Laos and southern China.